A stock index currently stands at 350 . The risk-free interest rate is (8 %) per annum

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A stock index currently stands at 350 . The risk-free interest rate is $8 \%$ per annum (with continuous compounding) and the dividend yield on the index is $4 \%$ per annum. What should the futures price for a 4-month contract be?

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Options Futures And Other Derivatives

ISBN: 9780132164948

8th Edition

Authors: John C. Hull

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Question Posted: Mar 04, 2024 07:00 AM

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A stock index currently stands at 350 . The risk-free interest rate is (8 %) per annum

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